Monday, November 14, 2011

Polling When There is No There There

Deficit spending has been used effectively. (Monroe Times, 11/9/2011)

Excerpt: According to a recent poll, most Americans think government deficit spending during recessions is wrong because it increases debt. Economic experience tells us otherwise.

From summary of NBER Working Paper No. 17103, "Americans' Financial Capability", by Annamaria Lusardi.   Finally, the majority of Americans lack basic numeracy and knowledge of fundamental economic principles such as the workings of inflation, risk diversification, and the relationship between asset prices and interest rates.

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